ICAC - Cotton This Month
Falling Consumption and Rising Stock Levels
Global consumption for 2019/20 is expected to be 23 million tonnes, an 11.3% decrease from the previous season. With global production expected for 2019/20 at 26.2 million tonnes, a 2% increase from the previous season, ending stock levels are expected to increase to 21.75 million tonnes, the highest level in the past five seasons. Consumption and trade have decreased in the wake of the containment measures to control the Covid-19 pandemic and all major consuming countries have been impacted by the retail losses that have led to decreased orders as well as the closure of mills to reduce the spread of Covid-19. Consumption in China, the world’s leading country for mill-use, is expected to fall by 12% to 7.25 million tonnes from the previous season. With lower international cotton prices and as trade negotiation with the US move forward, China’s consumption and import estimate have increased month to month, with imports currently estimated at 1.9 million tonnes for 2019/20 as manufacturing activity begins to resume and to refresh reserve stocks.